Gold holds near US$1,710 on global growth concerns

LONDON (Oct 29, 2012): Gold prices held near US$1,710 an ounce on Monday as concerns over the global growth outlook supported demand for the metal as a store of value, but losses in the broader financial markets kept a lid on gains.

Source from (The Sun Daily): http://www.thesundaily.my/news/527972
Published: October 31, 2012

Resilience above US$1,700 an ounce, a level gold repeatedly tested last week, has reassured buyers who had feared a deeper correction after it fell to a more than six-week low at US$1,698.39 on Oct 24, analysts said.

But the metal struggled for traction on Monday as global stock and commodity prices fell, with a recent run of downbeat corporate earnings casting a shadow over the growth outlook and investors bracing for the impact of a giant US hurricane.

US stock markets will be closed on Monday and possibly Tuesday, the operator of the New York Stock Exchange said, as the East Coast braces for Hurricane Sandy. That could thin gold trade.
Spot gold was down 0.08% at US$1,709.44 an ounce at 1250 GMT, while US gold futures for December delivery were down US$1.80 an ounce at US$1,710.10.

"Gold is holding up well due to a higher risk perception, because gold is often perceived as a safe haven," said Eugen Weinberg, global head of commodities research at Germany's Commerzbank in Frankfurt, noting key support at US$1,700.

"People are more negative on the economy and so are looking for somewhere to park funds."
Spot gold is heading for its biggest monthly loss since May this month, having hit an 11-month peak above US$1,795 an ounce on Oct 5 after the Federal Reserve unveiled its latest stimulus programme of purchasing mortgage-backed debt.

Analysts and traders said they expected gold to trade in a narrow range due to uncertainty ahead of non-farm payrolls data later in the week. The US Federal Reserve has explicitly tied the extent of its new easing programme to the jobs market. – Reuters